00 - Prerequisites

This vignette describes the necessary prerequisites for installing r2dii.climate.stress.test and performing the stress testing analysis.

Hardware requirements

  • Operating system: Linux, Mac, Unix, or Windows. Must be 64-bit.
  • RAM: 8GB or more.
  • Hard Drive Space: 5GB or more.

Software Requirements

The 2DII 1in1000 stress test is performed using the 1in1000 model suite writting in R code and distributed as an R package. R is a programming language in which the source code is written. To use R, it is easiest to use an Integrated Development Environment (IDE), in this case RStudio. It is recommended for the person performing the analysis to have basic coding skills.

Programming language

  • R - version must be 3.4 or higher (it is best practice to download the most recent version of R). This can be downloaded for Windows from https://cran.r-project.org/bin/windows/base/
  • In most cases, this should be downloadable from the financial institution’s software repository but may be subject to internal approval

Integrated Development Environment (IDE)

PACTA for Banks

PACTA for Banks enables banks to measure the alignment of their corporate lending portfolios with climate scenarios across a set of key climate-relevant sectors and technologies. The climate transition risk stress test uses prewrangled climate scenario data from PACTA.

Helpful links for understanding PACTA for Banks and guidance material to help run the software:

Asset Resolution

The 1in1000 model suite uses forward looking asset-level production data in order to account for adaptive capacity. The respective data are provided by Asset Resolution.

Next steps

Are you running the 1in1000 model suite yourself ?

After successfully completing the prerequisites, see the README on how to install the package followed by the below-mentioned vignettes on how to run the analysis:

Is the 1in1000 model suite ran for you by 2DII ?